Exports unstoppable

Thailand is poised to hit record export growth of 25 per cent, worth US$190.11 billion (Bt6.5 trillion) this year, Commerce Minister Chaiya Sasomsap said yesterday.

Chaiya came up with the revised figure from the earlier target of 15-20 per cent, or $174.9 to $182.5, after meetings with 56 overseas trade offices and 46 honorary trade advisers from 30 countries in Bangkok yesterday.

The factors that will contribute to help achieve the revised target are strong export growth to all target markets, in particular new potential markets. Also, exports were robust in the first seven months of the year, growing by 26.1 per cent to $104.16 billion.

"Despite some negative factors, especially the slowing world economy and political instability [at home], the government will aggressively boost exports [growth] this year to 25 per cent," Chaiya said.

Export is the key engine to drive the country's economic growth, accounting for 65 per cent of gross domestic product. The ministry will continue promoting exports to ensure sustainable economic growth, he said.

Chaiya added that the ministry will announce the official export target for 2009 in the fourth quarter this year, which should not be lower than this year's growth target of 10-12.5 per cent.

To achieve the goal, the ministry has set up five strategies to drive exports:

l Expedite export promotion in new markets by conducting business matching and setting up many trade activities.

l Maintain major markets by promoting Thai brands, quality and value-added products and services.

l Promote Thai services such as spa shops and support Thai restaurants overseas to more than 15,000 outlets worldwide.

l Promote Thai entrepreneurs to do business overseas from 800 Thai companies overseas.

l The ministry will cooperate with other related agencies to reduce logistics costs, which is a major burden for Thai exporters.

Mark Paul Muntz, an honorary trade adviser in the United States, said the political conflict in Thailand should not affect exports to the US this year, although the situation has undermined travellers' confidence.

However, he said that if the political uncertainty was prolonged, it could affect investment from the US. He also said although the economic downturn in the US had affected high-end fabrics and garment exports, Thai food and agricultural goods exports to the US were still on the rise because of their high quality and safety.

Wilarat Osathaworanan, director of Thai Trade Office in Guangzhou, China, said that due to high export growth to China, the two countries will definitely achieve the two-way trade target of $50 billion by 2010.

Products that have high export potential are Thai tropical fruits, jewellery and spa services.

Pilun Bhanich Supapol, director of the Thai Trade Centre in Dubai, the United Arab Emirates, said that exports to the Middle East, a new potential destination for Thailand, are expected to account for 5.9 per cent of total exports, up from 4.9 per cent last year.

Exports to the Middle East are expected to surge beyond 20 per cent to $9.4 billion this year, thanks to high demand for Thai goods and quality service to serve high-income buyers in the market.